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(Bloomberg) -- California’s general-obligation bond rating was raised by Fitch Ratings to AA, third-highest investment grade and a step above Moody’s Investors Service and S&P Global Ratings.

Fitch’s one-notch upgrade on $72 billion of debt “reflects the improved fiscal management that has become institutionalized across administrations,” the company said in a release Friday.

The state’s use of temporary tax increases, reserves and limiting growth in spending will help it better withstand economic downturns, Fitch said. The ratings outlook is stable.  

California’s recovery from the Great Recession has beenstrong. The state has gained more than 3.2 million jobs since the economic expansion began in February 2010, and its unemployment rate is at a record low 4.1%. California was last ranked AA by Fitch in the two years that ended December 2002,
when it fell to A, according to the state treasurer’s office.

“A double A rating is appropriate,” said John Ceffalio, municipal-credit analyst for New York-based AllianceBernstein LP. “They’ve really done a fantastic job building reserves and that’s lasted through two governors.”

(Bloomberg)